Welfare Reform Sparks Heated Parliamentary Clash Amidst Accusations of U-turns and Economic Mismanagement

A heated exchange unfolded in Parliament today as Prime Minister Keir Starmer and senior opposition figure Kemi Badenoch clashed fiercely over the government's recent welfare reform bill and their respective economic records.

The debate centered on the government's proposed welfare reforms, with Prime Minister Starmer asserting the new bill marked a significant step in rebalancing Universal Credit and introducing a pathway to reform Personal Independence Payment (PIP). He highlighted that the legislation would end mandatory reassessment for individuals with severe disabilities, stating it was the 'right thing to do'. Starmer reiterated his government's core welfare principles: those able to work should, those needing help into work will receive state support, and those unable to work must be supported and protected. He contended that the reformed system would benefit individuals, taxpayers, and the economy, and pointed to ongoing investments in job centres and the 'trailblazer scheme' as evidence of getting people back into employment.

However, Kemi Badenoch directed inquisitive questions towards the government's welfare policy, claiming the bill was 'completely gutted' by a U-turn during its passage, specifically removing Clause 5. She questioned the Prime Minister's absence during this process and argued that the bill would not save money but instead cost millions, making it the first time a Prime Minister had proposed a bill to save money that ultimately increased costs. Badenoch challenged the Prime Minister to state how many people the bill would get into work. She accused the Labour government of causing a significant increase in incapacity benefit claimants, with an additional 1,000 people signing on daily since they took office, representing a 50% rise compared to the previous administration. Badenoch warned that sickness benefits were projected to soar to £100 billion under the current government, directly attributing this to what she called Labour's "mess" and their inability to control their own MPs following the 'humiliating U-turn'.

Starmer swiftly countered, blaming the opposition for 'breaking' the existing welfare system, drawing parallels with the NHS and the economy. He accused them of voting to maintain a "broken system" that he said contributes to one million young people not learning or earning, and three million people out of work due to ill health.

The debate broadened to the economy, with Badenoch pressing the Prime Minister to rule out tax rises in the upcoming autumn budget, citing public fear and the Chancellor's alleged incompetence. She claimed unemployment had risen every month since Labour took office and that the government was creating new financial black holes.

In response, the Prime Minister declined to pre-empt future budget decisions but highlighted his government's economic progress since taking office, countering claims of stagnation under the previous government. He proudly listed several achievements:

• Securing £120 billion in inward investment in the first year of the Labour government, including a recent £40 billion from Amazon.
• Achieving the highest business confidence levels in nine years.
• Recording the fastest growth in the G7 for the first quarter of the year.
• Implementing free school meals and breakfast clubs.
• Delivering £15 billion investment in transport across the North and Midlands.
• Progressing with planning and infrastructure to build 1.5 million homes, including significant investment in social and affordable housing.
• Securing three new trade deals, including the long-sought US trade deal, which led to the removal of tariffs and supported jobs in sectors like JLR.

Badenoch concluded by questioning the Chancellor's long-term position, citing Labour MPs allegedly calling the government 'incoherent and shambolic', and reiterating her view that Starmer was 'too weak to get anything done'. Starmer dismissed her criticisms as 'unserious and irrelevant', asserting his government was 'clearing up' a £22 billion 'black hole' left by the previous administration and would continue to fix the systems they inherited.

The heated exchange underscored the deep divisions between the government and opposition on the future of welfare and the management of the national economy, as the Labour government approaches its first anniversary in office.